Nasdaq 100 testing trend line

The Nasdaq 100 has reached a key resistance zone here after a sharp recovery over the last few days:

Nasdaq 100
Source: TradingView.com and TradingCandles.com

As you can see, the tech-heavy index is testing a bearish trend line around the 14200-14300 area. Here, we also have the 21-day exponential moving average coming into play.

What the bears would like to see here is a reversal, ideally a sharp one at that, to take us below Monday’s low. If that happens, I would then expect a continuation to a new 2022 low thereafter.

As far as the bulls are concerned, well they still need yo see some further bullish price action to boost their confidence levels amid the ongoing situation with Russia/Ukraine. A closing break above this trend line would be a welcome sign.

All told, I am leaning more towards the bearish argument than bullish here and as such, would be looking for bearish patterns to emerge to sell into this recovery.

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